A PharmEasy investor significantly reduces the value of their investment, suggesting a new $456 million valuation

PharmEasy, an Indian online pharmacy, is now valued at approximately $456 million, according to a filing from its investor Janus Henderson, which reported the value of its 12.9 million shares in the company at $766,043. Initially, Janus Henderson’s Global Research Fund had invested $9.4 million to purchase these shares, marking a significant 92% decrease from PharmEasy’s peak valuation of $5.6 billion.

This low valuation persists despite PharmEasy securing more than $200 million in fresh funding earlier this year and preparing for an initial public offering (IPO) in 2025. In 2023, amid a funding crunch and debt obligations, PharmEasy conducted a rights issue, which allows companies to raise capital by offering shares at a discount, potentially diluting existing shareholders’ stakes if they do not participate.

Through the rights issue, PharmEasy raised $417 million, according to co-founder Dharmil Sheth, and a regulatory filing from April 2024 showed an additional $216 million secured. Backed by major investors like Prosus, Temasek, TPG, and B Capital, PharmEasy operates one of India’s largest online pharmacy platforms. The valuation from Janus Henderson suggests PharmEasy’s current worth is significantly lower than the $600 million it paid for the diagnostic lab chain Thyrocare in 2021, despite raising over $1 billion to date.

PharmEasy’s financial troubles deepened after it postponed an $843 million IPO planned for November 2021, leading the company to seek debt financing, including a $300 million loan from Goldman Sachs. These challenges hindered its ability to repay loans and raise new equity, further impacting its market position.